The awards ceremony will be held on 22 October and will be a collaboration between music industry body BPI, the council and Newcastle-based music developer Generator.
Last year’s ceremony was also celebrated through the Mercury Fringe, a series of concerts which showcased musicians from across the region.
Generator CEO Mick Ross said the fringe programme created “real opportunities” for musicians and this year it would be even bigger.
“This year, we’re going further – expanding access, opening more pathways and ensuring northern artists don’t just take part, but set the agenda,” he said.
“When Mercury left London, it proved the North has the talent, infrastructure and ambition to lead at the highest level.”